Multichannel retail’s pioneers

10 years ago next month the dotcom crash that was to rock markets worldwide began.

But a decade on, online and multichannel retail are firmly established. And entrepreneurs still quest, with Grail-like fervour, for the transformational business models for further success.

The results are wildly divergent. Take two retail examples - fashion player Adili and grocer Ocado.

AIM-listed Adili seemed to tick the right boxes. Not only an online fashion specialist but one that traded off its ethical credentials - another must-have of the noughties. But last week its shares were suspended after talks to secure working capital funding ended unsuccessfully.

Ocado, which is mulling an IPO, is a different beast with an impressive list of shareholders including Procter & Gamble and Goldman Sachs. Plenty of analysts like the etailer, which might be valued at £1bn.

But Ocado is a bit like a retail version of Gaudi’s Sagrada Familia - a marvel to behold but still unfinished. It’s profitable at the EBITDA level but makes a pre-tax loss and some question whether it is ready to float. As with Barcelona’s famous church, the building work could go on for a while yet.

Investors of course want exposure to businesses that reflect and cater for changing consumer habits. Surprisingly, certainly for those who forecast the end of traditional shops back in the days of the dotcom boom, some of the longest established retailers have made the greatest strides into multichannel.

Home shopping group N Brown, for instance, has shifted from its catalogue foundations and performed well. And Argos, owned by Home Retail Group, has been a pioneer.

There will of course emerge new digital retailers that may change the face of the industry, and float successfully. But the multichannel merits of older companies should not be overlooked.

In the case of Home Retail there may be bid excitement too if - as some analysts suspect - private equity sees opportunity to buy the business off the market.